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Impact of IT on Airlines and Air Travelers

This chapter explores the impact of information technology on airlines and air travelers. It covers topics such as airline reservation systems, airport information systems, and the use of technology for passenger experience. Key concepts include airline reservation systems, baggage handling systems, and revenue management systems.

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Impact of IT on Airlines and Air Travelers

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  1. Chapter 7 • Aviation and Information Technology

  2. Chapter 7 Learning Objectives • After studying this chapter you should be able to: • Analyze the impact of IT on airlines and air travelers; • Explain how airline reservation systems work and how they connect with other information systems; • Understand how information systems support management decision making in airlines; • Examine how information technologies are used by airports to streamline the passenger experience; and • Evaluate the present and future information technology applications in airport operations.

  3. Key Concepts • Airline reservation system (ARS) • Baggage handling system (BHS) • Customer relationship system (CRS) • Fare Quote System • Flight Information Display Systems (FIDS) • New Distribution Capability (NDC) • Passenger name record (PNR) • Passenger Service System (PSS) • Revenue management system (RMS) • Safety Management System (SMS)

  4. Types of Airlines

  5. FIGURE 7.1 Key IT systems used by airlines DECISION SUPPORT SYSTEMS AIRLINE RESERVATION SYSTEM DEPARTURE SYSTEMS Schedules & Availability Fleet Management Departure Control System Fare Quotes & Rules Schedule Optimization Gate Control Passenger Information Revenue Management Flight Dispatch Flight Operations Systems Ticketing MARKETING & CRM SYSTEMS TRAVEL INTERMEDIARIES GLOBAL DISTRIBUTION SYSTEM Direct Bookings Traditional Agents & OTAs Availability: Schedules Loyalty Programs Travel Management Companies Pricing: Fare Quotes & Rules Customer Service Tour Operators & Wholesalers Distribution: Booking & Ticketing TRAVELLERS IN FLIGHT TECHNOLOGIES Business & Leisure Entertainment Groups Communications Frequent Flyers Crew Support Systems

  6. Airline Reservation Systems • Key Components: • Flight schedules and availability: availability display • Fare quotes and rules: fare quote system, fare rules, cabin classes, booking codes, fare basis code • Passenger information: passenger name record, record locator, special service requests • Electronic ticketing: e-ticket, boarding pass

  7. Fleet Management Systems

  8. Flight Scheduling Systems • Scheduling systems must be able to handle: • Strategic Goals • Route Network • Passenger Demand • Aircraft Type • Human Resources • Environmental & Safety Regulations • Airport Restrictions • Contingency Planning

  9. Revenue Management Systems (RMS)Capabilities

  10. Departure Control Systems (DCS)Capabilities • Check in • Boarding passes • Seat Allocation • Checked Baggage • Load Control • Passenger Identification • Denied Boarding • No shows and Standby Passengers • Interline Connections • Interoperability

  11. In-flight Technologies • Passengers • In flight entertainment (IFE) system • Geographic information system (GIS) • Communication systems Crew • Tablets • Navigation, communication and flight logs • Point-of-sale devices

  12. FIGURE 7.2 Stages of the Passenger Journey ORIGIN AIRPORT TRANSIT DESTINATION

  13. Automated parking entry Automatic check in upon entry to terminal Parkingavailability Directionsto terminal Notification & offer to book later flight if late FIGURE 7.3 Example of geofencing around an airport

  14. Check in Options • Online check-in • Self-service kiosks • Auto check in using geofencing and smartphones • Check in counters

  15. Key Steps in Security Scanning

  16. Pre-boarding technologies Passengers • Flight information display systems (FIDS) • WiFi hotspots • Recharge stations • Mobile apps (e.g. airport navigation, GateGuru) • Airports • Business intelligence tools (passenger volumes, queues, dwell times) • Point-of-sale (POS) systems • Alerts and notifications

  17. Arrival • Immigration databases (e.g. ‘No Fly List’) • e-passports • Scanners and cameras • Passenger Identification: biometrics systems and future systems that will analyze walking gait, body language, heart rhythms or DNA profiles to identify passengers

  18. Baggage and Cargo Handling • Baggage handling systems (BHSs) • Bag tags with optical bar codes • Conveyer belts and robotic systems for sorting • Baggage tracking systems (e.g. Bagtrac) • Lost baggage systems (e.g. World Tracer) • Self-service bag drops • RFID bag tags and chips in luggage

  19. Safety and Security Systems • Communications Systems • Navigation Systems • Surveillance Systems • Flight and Weather Information Systems

  20. Environmental Management Systems (EMS)

  21. Discussion Questions • How will advances in smartphones and apps impact the marketing, distribution and delivery of aviation products? • Throughout this chapter we have identified a number of applications allowing airlines and airports to track passengers by using signalling technologies such as NFC, RFID and BLE embedded in baggage tags and smartphones. What are the pros and cons of these applications? What privacy or ethical issues might arise? How can airlines and airports overcome these issues? • Visit the FFP website for an airline you know. Look for information about redeeming and earning FF points (miles). List all the ways in which members can earn and redeem points. How does the technology on the website support the FFP? What improvements would you like to see?

  22. Discussion Questions • By 2035 the global airline fleet is expected to be twice as large as in 2018 and by 2030 passenger numbers are expected to be double. How can information technology help airlines and airports cope with the challenges of this expected growth? • Visit the website for Changi Airport in Singapore and browse through the pages about terminal facilities and services. Note down examples requiring use of information technology. What IT inspired airport services do you expect to see in ten years? • How might airports and airlines use new technologies such as augmented reality, predictive analytics and the Internet of Things to streamline and improve the passenger experience?

  23. Useful Websites

  24. Case Study SITA • Société Internationale de TélécommunicationsAéronautiques • Formed in 1949 by a consortium of European & British airlines • Developed world’s first business packet switching network • Employs 4,700+ staff in over 200 countries • Key solutions include:

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